PTC'25 | Inside Brazil's thriving data centre ecosystem

Summary

In this insightful interview, Andre Bunard, Commercial Director of Teo Data Centers, discusses the growing significance of Brazil in the global data center landscape. He highlights Brazil's unique advantages, such as its renewable energy resources, strong connectivity, and strategic location near the ocean. Andre also addresses the challenges the country faces, including energy transmission bottlenecks, bureaucracy, and the capital requirements for large-scale projects. He expresses optimism about Brazil's future as a hub for digital infrastructure and emphasizes the potential for the country to become a key player in the global data center market in the coming years.

Takeaways

• 😀 Brazil is the largest economy in Latin America, making it a key player in attracting data center investment in the region.
• 😀 The demand for data centers in Brazil is driven by cloud computing, AI, and machine learning technologies, with large-scale deployments on the rise.
• 😀 Brazil has an advantage in renewable energy, with 85% of its energy matrix being renewable, mainly from hydroelectric sources.
• 😀 The country's integrated energy grid allows for efficient energy consumption across regions, with major data centers relying on both hydroelectric, solar, and wind energy.
• 😀 Data centers in Brazil are becoming more efficient by generating their own renewable energy, which contributes to sustainability and cost-effectiveness.
• 😀 Energy transmission bottlenecks, high taxes, and capital requirements for large projects are the main challenges faced in Brazil's data center sector.
• 😀 Brazil’s government is becoming more supportive of the data center industry, with ongoing discussions and improvements in policies for investment facilitation.
• 😀 Brazil’s geographic location, near the ocean, positions it well for international data traffic, with Fortaleza becoming a key hub for subsea cable infrastructure.
• 😀 The Brazilian data center industry is evolving to incorporate new technologies like liquid cooling and energy storage solutions, addressing both efficiency and sustainability.
• 😀 Despite challenges, Brazil has the potential to become one of the top five global leaders in data center infrastructure within the next few years.
• 😀 Brazil’s data center industry is on track to meet growing demands from global enterprises, positioning the country as a crucial player in the global digital economy.

Q & A

What makes Brazil such a magnet for investment in data centers?

Brazil attracts investments in data centers due to several factors, including its status as the largest economy in Latin America, strong connectivity, and a favorable energy matrix with a high percentage of renewable energy (85%) compared to other regions. These factors, combined with growing demand for cloud services, AI, and machine learning, position Brazil as an ideal location for data center infrastructure.

How does Brazil's energy matrix contribute to its appeal for data centers?

Brazil's energy matrix is unique due to its high reliance on renewable sources, particularly hydroelectric power. Additionally, the country is expanding its use of solar and wind energy, ensuring a sustainable and abundant energy supply for growing data center demands. This renewable energy availability is a key factor for global companies seeking eco-friendly infrastructure.

What challenges does Brazil face in developing data centers?

Brazil faces several challenges in data center development, including energy transmission bottlenecks, regulatory issues, high taxes compared to other countries, and capital constraints for large-scale projects. Despite these challenges, efforts are underway to address these issues and improve the environment for data center investments.

How is the Brazilian government supporting the growth of the data center industry?

The Brazilian government, both at federal and state levels, is engaging with the data center industry to address challenges and create supportive policies. There's ongoing collaboration to improve regulations, reduce bureaucratic hurdles, and foster investment, particularly in the renewable energy sector.

What role does Brazil's geographical location play in its data center development?

Brazil's geographic location is highly beneficial for data center development. Positioned close to North America and Africa, Brazil serves as a strategic hub for global data traffic. The country's coastal access enables easy connectivity via subsea cables, further enhancing its position as a key player in digital infrastructure.

What are some of the exciting technologies emerging in Brazil's data center sector?

In Brazil, emerging technologies include liquid cooling for more energy-efficient data centers, as well as advancements in energy storage, like batteries, to improve cost-effectiveness and environmental sustainability. Brazil is also exploring renewable energy generation within data centers to reduce costs and enhance sustainability.

How does Brazil's data center ecosystem integrate with global infrastructure?

Brazil's data center ecosystem is becoming increasingly integrated with global infrastructure. The country benefits from its subsea cable networks, which enable strong international connectivity, particularly through cities like Fortaleza, which has become a major internet traffic hub. This global integration is critical as Brazil increasingly supports data workloads from around the world.

How do energy storage and renewable energy impact Brazil's data center projects?

Energy storage solutions, such as batteries, play a crucial role in improving the efficiency and sustainability of Brazil's data centers. By incorporating renewable energy sources like solar and wind, and utilizing energy storage, data centers can ensure a stable and cost-effective power supply while reducing their environmental impact.

What is the potential for Brazil to become a global hub for digital infrastructure in the future?

Brazil has the potential to become one of the top five global hubs for digital infrastructure. With ongoing investments in data centers, energy generation, and connectivity, combined with its strategic geographic location, Brazil is poised to play a major role in supporting the growing global demand for digital services, particularly in cloud computing, AI, and machine learning.

What is the main wish for Brazil's data center landscape in the next 12 months?

In the next 12 months, there is hope that Brazil's data center industry will continue to evolve towards greater organization, addressing barriers such as high taxes and regulatory challenges. The goal is to ensure Brazil becomes an even more attractive destination for investment, making it easier and more cost-effective for companies to deploy large-scale data center infrastructure.